Regulatory Alerts | 88396On Requirements for Banks and Other Financial-Credit Organizations Regulated by the National Bank of the Kyrgyz Republic When Granting Loans to Individual Clients
The National Bank of the Kyrgyz Republic issued this ruling to protect consumer rights and enhance the safety of the banking system by imposing strict limits on penalty interest rates for loans to individuals. The regulation mandates that penalty rates for overdue principal and interest must not exceed the original loan interest rate, and total penalties over the loan term are capped at 20 percent of the loan amount. This directive applies to all commercial banks, microfinance organizations, credit unions, and the FCFS JSC, with enforcement oversight assigned to the Deputy Chairman of the National Bank.
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